Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.C.R. No. 134, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the Board of Land and Natural Resources to lease submerged lands at Keehi Small Boat Harbor for the development and operation of a commercial ship repair facility.

Your Committee finds that Honolulu Marine, Inc., doing business as Kewalo Shipyard, presently operates a commercial ship repair facility on state lands at Kewalo Basin. Your Committee further finds that the services provided by Honolulu Marine, Inc. to the general boating industry and the United States Navy are a valuable contribution to our State's economy.

Honolulu Marine, Inc.'s present site is under a lease from the State that does not expire until 2021. However, the Hawaii Community Development Authority that is tasked with developing this public land as part of the development of the Kakaako business district has requested that Honolulu Marine, Inc., vacate the Kewalo Basin site as soon as possible.

Working with the Hawaii Community Development Authority and the Department of Transportation, Honolulu Marine, Inc., has identified a site under the management of the Department of Land and Natural Resources located at Keehi Small Boat Harbor that could be improved to meet the needs of Honolulu Marine, Inc. However, to properly utilize this new site, the fast lands of which are approximately one-third the size of the present Kewalo Basin site, some of the adjoining submerged lands also have to be leased to Honolulu, Marine, Inc. in order to accommodate a floating drydock.

Section 171-53(c), Hawaii Revised Statutes, requires the prior authorization of the Legislature by concurrent resolution for a state lease of submerged lands. This measure provides the required prior authorization.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 134, S.D. 1, and recommends its adoption.